What you need to know about recent broker commission cases

A jury trial this month in a Kansas City federal courtroom could deliver a significant blow to the nation's largest real estate companies. Consumers are challenging major residential real estate players – the National Association of Realtors, HomeServices of America, Keller Williams, Anywhere Real Estate (formerly Realogy) and RE/MAX – and the rules that dictate how agent commissions for home purchases are determined. Those in home lending are watching closely, wary of unintended consequences that could affect financing for buyers. An attorney for plaintiffs in opening statements last week characterized the ongoing Sitzer/Burnett trial as a "refund case" for home sellers, who are seeking up to $4 billion in damages. Read on to learn more about the case.

READ MORE: What you need to know about recent broker commission cases

Mortgage application activity falls for fourth time in five weeks

Mortgage application volumes overall dropped for the fourth time in five weeks amid the ongoing surge in rates, but refinance activity picked up, according to the Mortgage Bankers Association . The MBA's Market Composite Index inched down a seasonally adjusted 1% for the weekly period ending Oct. 20. On a year-over-year basis, activity came in 17.9% lower, with current rates at a 23-year high. "Ten-year Treasury yields climbed higher last week, as global investors remained concerned about the prospect for higher-for-longer rates and burgeoning fiscal deficits. Mortgage rates followed," said Joel Kan, MBA vice president and deputy chief economist, in a press release.? The average 30-year conforming rate for balances below $726,200 in most markets accelerated to 7.9% among MBA members.

Homestar Financial Corporation to wind down operations

Homestar Financial Corporation announced Tuesday it will cease its operations. In a statement, the mid-sized lender said the decision to close shop "comes on the heels of additional mortgage volatility driven by the macro economy." As of mid-October, mortgage interest rates have continued to lurch towards 8% , making lending all the more difficult. "These unforeseen events have made mortgage lending unsustainable for anyone except the most deep-pocketed lenders," Homestar added in a statement. The Georgia-based lender will accept locks through Oct. 31, 2023 and will continue to fund all locked loans in its pipeline, it said. This decision will impact at least 179 loan officers who are currently sponsored by the mortgage shop, per the National Mortgage Licensing Service as of Wednesday.

All six MIs now integrated with Mortgage Cadence's LFC

Mortgage Cadence has created integrations for National MI and Essent on its legacy Loan Fulfillment Center loan origination system , meaning all six active underwriters are now available through this platform. LFC is one of two platforms the company is managing, and it is nearing the end of its life cycle, although time-wise, that is far off, said Jim Rosen, executive vice president of services, in an interview. The system's retirement date has not been set but may take place in a couple years, depending on a variety of factors. The company is also managing its flagship Mortgage Cadence Platform, which all of its enterprise customers are already using.?

Anywhere Real Estate posts Q3 profit

The parent of brands including Century 21 and Coldwell Banker also cut almost $300 million from its over $2.5 billion in debt this summer, according to earnings reported Tuesday. Executives in an earnings call touted the quarterly performance but also fielded numerous questions about Anywhere's involvement in a high-profile industry lawsuit . The company in September agreed to an $83.5 million settlement to avoid a lengthy trial in the Sitzer/Burnett class action case against some of the nation's largest real estate firms. The trial is still ongoing, although Anywhere and competitor RE/MAX, which also settled , are not participating in today's proceedings.

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